The United States is warning countries that continue to trade with Iran to expect new financial penalties. Treasury Secretary Scott Bessent announced the threat during a news conference on Monday. He said the US is targeting countries that support Iran economically and warned they could be cut off from the global financial system. Bessent emphasized that firms helping Iran launder money would be removed from the US dollar system.
The move comes after the US and Israel launched a military strike against Iran earlier this year, according to The Guardian. Iran’s security chief, Mohsen Rezaei, responded by saying the country would retaliate in a way that could shake the region, according to a report from NPR. Rezaei, who leads Iran’s paramilitary Revolutionary Guard, also warned Gulf states against joining in the new sanctions. He said any country that helps enforce the sanctions would be seen as an enemy of Iran.
The US has already imposed many financial penalties on Iran over nearly fifty years. These include restrictions on businesses and individuals that help Iran avoid existing sanctions. The US has also blocked most goods from entering Iran through a naval blockade. Bessent said the new plan focuses on governments and countries that support Iran financially, not just individual companies.
He did not name which countries might be targeted next, but said President Donald Trump has been calling world leaders about the issue, CNN reported. The US is asking other countries to stop trading with Iran and cut off financial support. Some analysts question how effective these new measures will be in changing Iran’s behavior.
Iran’s currency has dropped sharply since the announcement, with more than two million rials to the dollar. Ordinary Iranians are struggling to afford basic needs like food and are using credit systems to buy essentials.
Iranian officials have said they are not surprised by the new pressure. They argue that Iran has long survived economic hardship and is prepared to continue doing so.
The Iranian government’s statistical center reported inflation is now at almost 90%. In anticipation of the new sanctions, some countries have already taken action. The United Arab Emirates announced it was suspending trade with Iran.
Israel’s prime minister praised the US for its latest steps against Iran. Netanyahu said the US is rightly imposing a high cost on Iran and those who support it.
The US has also warned Iranian soldiers that they should question their leadership and consider actions that could bring down the government. It is unclear if regular Iranian soldiers would be able to see this message due to restrictions in the country.
Bessent did not lay out a specific timeline for when countries must cut ties with Iran or face penalties. He said the US Treasury and State departments will follow up with calls and visits to push for compliance.
China, which is Iran’s biggest oil buyer, was not named in Bessent’s introductory remarks on Monday. The Chinese embassy said sanctions and pressure do not help resolve the issue.
Iran has also declared the closure of the Strait of Hormuz in response to the conflict. This action has disrupted oil supplies from the Gulf region, which had already suffered major losses due to the war.
Some experts believe Washington is trying to achieve what military force has not yet accomplished through economic pressure. The US defense secretary said that further military action was not off the table.
Analysts say the situation shows how economic pressure is being used as an alternative to direct warfare.
IMAGE: Iran’s Top Trading Partners and Trade Routes in 2024 DNR Art Department